although rates are STILL at extreme historic lows this week has been anything but good for potential home buyers and those thinking of refinancing. mortgage rates, on average, are up ~20 basis points (that’s almost a quarter of a point in laymen’s). not to worry, this isn’t a death sentence – the Fed states they will remain committed to keeping long-term rates low.
WHY have rates edged up this week??
the economy is growing more quickly than was expected a month or two ago AND stronger than what the Fed has been thinking. the positive outlook for the economy has driven stock indexes to the best levels since the sub-prime economic meltdown in 2008 (this is GREAT news!). another major factor that had helped keep US rates so low in the last 5 months was the debt crisis in Europe. well, that no longer seems to be a major factor since Greece got its bailout funds and will avoid default this month.
WHAT to expect??
in my opinion mortgage bonds (which dictate yields and rates) are ‘oversold’ and may be due for a minor retraction – i’m looking for a little dust to settle next week. until then, you’re always welcome to email me for current updates at firstname.lastname@example.org.
I’m excited to announce the launch of our real estate talk show. Listen in on Real Time Real Estate DFW on Christian Talk 100.7 FM The Word Saturdays at 3pm or listen online at www.thewordfm.com. Our mission is to rebuild DFW’s housing and credit markets by surrounding YOU with right-hearted trusted advisors. Proverbs 15:22 tells us that Plans fail for lack of counsel, but with many advisors they succeed. Succeed with us every Saturday at 3pm. Upcoming show topics to include
1. Short Sales (for those looking to buy and for those families facing the painful event and how to go about it)
2. Real Estate & Divorce (how to best navigate the roads when Divorce and Real Estate come to a crossroads)
3. Credit Expert (something you NEVER thought about but may be KILLING your credit score)